Analysts rate Aterian Inc. (ATER:NSD) with a Strong Buy rating and a $5 target

STA Research
by: STA Research
Aterian Stock

Based on the Aterian stock forecast from 1 analyst, the average analyst ATER stock price target is USD 5.00 over the next 12 months. Aterian Inc’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Aterian stock forecast  is Slightly Bearish, which is based on 3 positive signals and 7 negative signals. At the last closing, Aterian stock price was USD 1.92Aterian stock price has changed by -0.49% over the past week, -0.57% over the past month and -84.00% over the last year.

 

About Aterian Inc. (ATER:NSD):

Aterian, Inc., together with its subsidiaries, operates as a technology-enabled consumer products company in North America and internationally. The company provides Artificial Intelligence Marketplace e-Commerce Engine, a software technology platform, which uses machine learning, natural language processing, and data analytics to design, develop, market, and sell products. Its platform offers home and kitchen appliances; kitchenware; heating, cooling, and health and beauty products; and air quality appliances, such as dehumidifiers, humidifiers, and air conditioners under the hOmeLabs, Vremi, Squatty Potty, Xtava, RIF6, Aussie Health, Holonix, Truweo, Mueller, Pursteam, Pohl and Schmitt, Healing Solutions, Photo Paper Direct, and Spiralizer brands. The company also sells essential oils. It primarily serves individual online consumers through Amazon and other e-commerce platforms, as well as through its owned and operated websites and other marketplaces. The company was formerly known as Mohawk Group Holdings, Inc. and changed its name to Aterian, Inc. in April 2021. Aterian, Inc. was founded in 2014 and is headquartered in New York, New York.

 

Most Recent Analyst Ratings for ATER’s Stock:

Target Up Alliance Global Partners USD 5 2022-08-15
Target Lowered by Alliance Global Partners USD 9 » USD 4.5 2022-03-11
Target Lowered by BTIG Research USD 9 » USD 5 2022-03-09
Target Lowered by BTIG Research USD 12 » USD 9 2022-01-18
Reiterated by BTIG Research Buy USD 12 2021-11-09
Target Raised by Roth Capital Neutral USD 5.5 » USD 12 2021-09-24
Target Raised by D.A. Davidson Buy USD 7 » USD 14 2021-09-24
Target Raised by Alliance Global Partners Buy USD 9 » USD 14 2021-09-24
Downgraded by Roth Capital Buy » Neutral USD 5.5 2021-08-10
Target Lowered by D.A. Davidson Buy USD 42 » USD 7 2021-08-10
Target Lowered Alliance Global Partners Buy USD 30 » USD 9 2021-08-09
Reiterated by Alliance Global Partners Buy USD 38 » USD 36 2021-06-15
Target Lowered by Roth Capital Buy USD 26 » USD 25 2021-06-11
Reiterated by Oppenheimer Holdings Buy USD 50 2021-06-03
Target Lowered by BTIG Research Buy USD 45 » USD 36 2021-05-07
Reiterated by Roth Capital Buy USD 40 » USD 30 2021-05-05

 

What we like:

Low volatility:

The annual returns for Aterian stock have been stable and consistent compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile. Although stability is good, also keep in mind it can limit returns.

Positive cash flow:

The company had positive total cash flow in the most recent four quarters.

High Gross Profit to Asset Ratio:

Aterian stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

 

What we don’t like:

Low market capitalization:

Aterian stock is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

Poor risk adjusted returns:

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns, the returns are unpredictable. Proceed with caution.

Below median dividend returns:

The average income yield of Aterian stock over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced on cashflow basis:

ATER stock price is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Negative free cash flow:

The company had negative total free cash flow in the most recent four quarters.

Low Earnings Growth:

Aterian stock has shown below median earnings growth in the previous 5 years compared to its sector.

Low Revenue Growth:

Aterian stock has shown below median revenue growth in the previous 5 years compared to its sector.

 

 

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